How Do Lease Options Work For Your Albuquerque House?

Real estate investors and private sellers are turning to lease options in order to sell property they no longer want. It can be a practical, efficient and lucrative way to sell. Learn more about how it works in our latest post!

Do you feel stuck or burdened by a home you want to sell? Have you tried listing it without any reasonable offers coming in? With a lease option, you can sell the house for the price you want, while making an extra income until the house closes. Keep reading to learn more about how to set it up, as well as the pros and cons it can offer you!

What Is It?

A lease to own agreement will give your tenant a way to lease your house with the option to buy at the end of the lease term. It is typically a win-win situation that will benefit both the buyer and seller. It isn’t always the first thing property owners think of when deciding to sell, but as you will see below, there are a number of benefits to consider.

What Are The Benefits?

Guaranteed Tenants

It is highly unlikely that your tenants will want to break the lease. They have a sincere interest in the house and will be paying a higher than average rent plus a deposit they will lose if they decide to leave the property. If they default on the lease, the agreement is off and they are out the extra money they have spent.

Higher Than Average Rent Payments

In some cases, a portion of the monthly rent payments will go toward the down payment on the house. In other cases, the higher than average rent is pure profit. The inflated price is the cost of letting the tenant postpone the purchase by allowing them to lease.

Sell For The Price You Want

Seeing as the tenant is more eager to buy, you likely won’t have a problem with them agreeing to pay the price you want for the home. As long as it appraised at the price you want, your tenant will pay. If you list the house on the MLS, you won’t have any guarantees of getting the price you are after for the property. You may even have to lower the price if it isn’t selling right away.

Tenant Pride

Seeing as your tenant will have a much larger interest in the house, they will do more to take care of it than the average renter. They treat the house as if it were their own, going out of their way to keep things nice.

What Are The Drawbacks?

Locked In Price

The price is negotiated form the beginning, so if your home value jumps up 20% during the agreement, you will still have to sell for the pre-negotiated price.

You Won’t See Your Cash Right Away

You should only do a rent to own agreement if you do not need the cash from the house right away. While you will receive a deposit and higher rent payments, the balance owed to you won’t be paid for a couple of years.

How Do I Set It Up?

Setting up a lease to own agreement is similar to setting up a rental agreement but with an option to buy at the end of the lease term. As with any real estate agreement, the terms of the deal should be made very clear to both parties. Both the tenant and the owner need to know what their roles and responsibilities are in relation to the home. For example, in most cases, the tenant will be responsible for the repairs, maintenance and even the property taxes on the home during the duration of the lease period. Working with a professional such as Mountain View Investors, Inc. can help you to ensure the agreement is handled correctly.

Here at Mountain View Investors, Inc. we’d love to spend some time with you to talk about notes and show you what notes we have available. You can get in touch by calling us at 505.404.1131 or by clicking here and filling out the form.

Robb is a great guy to work with when it comes to investing in real estate.

His local market knowledge, focus on service and ability to get deals done speaks great volumes about him and his business. I would highly recommend Robb! Kurt A. Nederveld, CEO of Rainstar Capital Group

Mountain View Investors, Inc.

Robb is a person of high integrity with an intense desire to do the very best for his clients.

He understands all aspects of real estate investing and project development. I highly recommend him as a resource for any real estate transaction. – Spencer Lewallen, Mortgage Loan Originator at VanDyk Mortgage

Mountain View Investors, Inc.

If you are thinking about doing business with MVI, I would highly recommend that…

“I have had the opportunity to have worked with Robb on several different levels in his real estate investing business (Capital, Owner Financing, and deal flow) I have experienced that Robb carries himself very professionally. If you are thinking about doing business with MVI, I would highly recommend that.” – Troy Fullwood, Founder at Pinnacle Investments

New Mexico’s Premier Note Buyer. Disclosure: Although I am a licensed real estate agent, I am not soliciting you to list your property or represent you. I am acting as a buyer/investor and only represent myself in any transaction. Mountain View Realty, LLC # 19613